Company name:
Mitsubishi Tanabe Pharma Corporation
Stock exchange listings (Section):
4508
URL:
http://www.mt-pharma.co.jp/
Representative:
Name: Michihiro TsuchiyaTitle: President and Representative Director
For further information, please contact:
Name: Yoshihisa SasouTitle: General Manager, Corporate Communications DepartmentTelephone: (06) 6205-5211
Planned date of filing of quarterly securities report: August 7, 2009
Note; Amounts less than ¥ 1 million have been rounded.
1. Results for 1st Quarter (April 1, 2009 to June 30, 2009 ）
Yen million
% change
Yen million
% change
Yen million
% change
1st Quarter of Fiscal 2009
100,786
(6.9)
22,585
(11.0)
23,067
(11.1)
1st Quarter of Fiscal 2008
108,249
-
25,389
-
25,940
-

Net income
per share
Net income
per share
(diluted)
Yen million
% change
Yen
Yen
1st Quarter of Fiscal 2009
11,388
(22.3)
20.29
-
1st Quarter of Fiscal 2008
14,648
-
26.10
-
(2) Consolidated Financial Position
Yen million
Yen million
%
Yen
30-Jun-0931-Mar-09
(Note)　Shareholders' equity　 ¥659,241 million　　(¥652,462 million in fiscal 2008)
2. Dividends
(Record date)
1st Quarter 2nd Quarter 3rd Quarter
Year-end
For the year
Yen
Yen
Yen
Yen
Yen
Fiscal 2008
-
14.00
-
14.00
28.00
Fiscal 2009
-
-
-
-
-
Fiscal 2009
-
14.00
-
14.00
28.00
(projected)(Note) Revision to dividend forecast in the quarter under review: No
Net assets
1,174.78
781,146
666,774
84.4
810,756
666,220
80.5
1,162.69
(1) Consolidated Business Results
Operating income
Ordinary income
Net sales
Summary of 1st Quarter Financial Results for year ended March 31, 2010
July 30, 2009
Tokyo, Osaka (First Sections)
Securities code number:
(Unaudited)
Dividends per share
Net income
(Note) Percentage changes in the above list show change in comparison with the previous 1st quarter.
Equity ratio
Net assets per share
Total assets
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3. Forecasts for Fiscal 2009 (April 1, 2009 to March 31, 2010)
Yen million
% change Yen million
% change Yen million
% change
1st half
199,500
(3.3)
22,500
(34.0)
22,500
(36.0)
Full year
408,000
(1.6)
63,500
(11.4)
63,500
(12.5)

Net income
per share
Yen million
% change
Yen
1st half
10,000
(39.0)
17.82
Full year
32,500
22.5
57.91
(Note) Revision to consolidated results forecast in the quarter under review: No
4. Other
(1) Significant change involving subsidiaries during the period (changes in designated subsidiaries accompanying changes in the scope of consolidation) [Yes/No]: No
(2) Application of simplified accounting methods or of special accounting methods in the preparation of quarterlyfinancial statements: YesNote: For details, please see page 6, Quantitative Information / Financial Statements, etc., 4. Other.
(3) Changes in accounting principles, procedures, method of presentation associated with the preparation of the quarterly consolidated financial statements (Items noted in the Changes in the Basis of Presenting Quarterly Consolidated Financial Statements section)1. Change accompanying revision of accounting standards: No2. Other changes: YesNote: For details, please see page 7, Quantitative Information / Financial Statements, etc., 4. Other.
(4) Number of shares issued (common stock)1. Number of shares issued at the end of the period (including treasury stock)
1st Quarter of fiscal 2009
561,417,916 shares
Fiscal 2008
561,417,916 shares
2. Number of shares of treasury stock at the end of the period
1st Quarter of fiscal 2009
256,052 shares
Fiscal 2008
252,197 shares
3. Average number of shares of during the period (quarter)
1st Quarter of fiscal 2009
561,163,571 shares
1st Quarter of fiscal 2008 561,212,034 shares
(Notes)All these estimates are forward-looking statements based on a number of assumptions and beliefs in light of the information currently available to management and are subject to risks and uncertainties.Actual financial results may differ materially depending on a number of factors, including economic conditionsand currency exchange rate fluctuations.
Net income
Net sales
Operating income
Ordinary income
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[Qualitative Information, Financial Statements, etc. ] 1．

Qualitative information about consolidated results of operations
In the first quarter (April 1, 2009 to June 30, 2009), business confidence in Japan continued to decline due to the worsening of the global financial crisis from fall 2008. In the second half of the quarter, certain sectors of the economy stopped declining, but nonetheless there was still cause for concern, such as fluctuations in the employment situation and in the financial and capital markets. The future course of the economy remains unclear. In the pharmaceutical industry, the market environment remained difficult, with an increase in the number of diagnosis-procedure combination (DPC) hospitals and further advances in a range of measures to control healthcare spending, such as the promotion of the use of generics. In this environment, the Company worked to implement its action plans for the achievement of the fiscal 2010 management objectives and five key challenges in the Medium-Term Management Plan 08-10―Dynamic Synergy for 2015, the three year business plan that was formulated in the previous fiscal year.
Consolidated results in the first quarter of the fiscal year ended March 31, 2010 (April 1, 2009 to June 30, 2009) were as follows.
(millions of yen)

First three months
of previous fiscal
year
First three months
of current fiscal year
Increase/ decrease
% change
Net sales
108,249
１
00,786
(7,463) (6.9)
Cost of sales
39,576
35,910
(3,666)
(9.3)
SG&A expenses
43,284
42,291
(993)
(2.3)
Operating income
25,389
22,585
(2,804)
(11.0)
Ordinary income
25,940
23,067
(2,873)
(11.1)
Net income
14,648
11,388
(3,260)
(22.3)

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【
Net sales】
Net sales declined ¥7.4 billion year-on-year, to ¥100.7 billion.
(millions of yen)

First three months
of previous fiscal
year
First three months
of current fiscal year
Increase/ decrease
% change
Pharmaceuticals 100,626
98,197
(2,429)
(2.4)
Domestic ethical pharmaceuticals
87,969 88,855
886
1.0
Overseas ethical pharmaceuticals
6,552 5,251
(1,301)
(19.9)
OTC Products
1,268
1,138
(130)
(10.3)
Others 4,837 2,953
(1,884)
(38.9)
Other businesses
7,623
2,589
(5,034)
(66.0)

・
Due to the transition on April 1 of API Corporation (hereinafter referred to as APIC) from consolidated subsidiary to equity-method affiliate, net sales declined by ¥7.2 billion (pharmaceuticals, ¥3.1 billion; other business, ¥4.1 billion).
・
In the pharmaceuticals segment, net sales were ¥98.1 billion, down 2.4%, or ¥2.4 billion, year-on-year.
・
In domestic sales of ethical pharmaceuticals, favorable sales were recorded by such products as Remicade, an anti-TNFα monoclonal antibody; Talion, a treatment for allergic disorders; and Anplag, an anti-platelet. In addition, sales of vaccines and generic drugs increased.
・
On the other hand, the appreciation of the yen had an adverse influence, and overseas sales of ethical pharmaceuticals declined. Moreover, due to the application of the equity method to APIC, other pharmaceutical sales declined by a large margin.
・
In the other business segment, in addition to the effect of the application of the equity method to APIC, sales of fine chemical declined in Japan and overseas. As a result, sales were down ¥5.0 billion year-on-year, to ¥2.5 billion.

【
Operating income】
Operating income declined 11.0%, or ¥2.8 billion, year-on-year, to ¥22.5 billion.
・
Due to such factors as changes in the product mix, decline in overseas sales, and the transition of APIC to equity-method affiliate, gross profit was down 5.5%, or ¥3.7 billion, year-on-year, to ¥64.8 billion.
・
Labor costs have increased due to higher retirement benefits expense. However, due to thorough cost reductions, and the effect of APIC, SG&A expenses were down 2.3%, or ¥0.9 billion, to ¥42.2 billion. R&D expenses were ¥16.1 billion.

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【
Ordinary income and net income】
Ordinary income was down 11.1%, or ¥2.8 billion, year-on-year, to ¥23.0 billion, and net income was down 22.3%, or ¥3.2 billion, year-on-year, to ¥11.3 billion.
・
Extraordinary loss was ¥3.0 billion with major items including impairment loss on idle assets accompanying head office relocation of ¥1.8 billion, restructuring expenses of ¥0.4 billion, such as expenses related to moving the head office, and loss related to business suspension of ¥0.6 billion, which was related to Medway, a recombinant human serum albumin preparation.

2．

Qualitative information about consolidated financial position
（１）
Balance sheets (millions of yen)

End of 1
st
quarter
(End of June 2009)
End of previous fiscal
year
(End of March 2009)
Increase/
decrease
Current assets
336,107 364,444 (28,337)
Fixed assets
445,039
446,312
(1,273)
Total assets
781,146
810,756
(29,610)
Liabilities 114,372
144,536
(30,164)
Net assets
666,774 666,220
554
Total liabilities and net assets
781,146 810,756 (29,610)
Total assets at the end of the first quarter were ¥781.1 billion, a decrease of ¥29.6 billion from the end of the previous fiscal year. Major factors causing changes in the balance sheet in comparison with the previous year-end were as follows.
・
The application of the equity method to APIC had the effect of reducing current assets by ¥11.3 billion, fixed assets by ¥4.3 billion, liabilities by ¥9.8 billion, and net assets by ¥5.8 billion.
・
Current assets were down ¥28.3 billion from the end of the previous fiscal year, to ¥336.1 billion due to decreases in cash and deposits, and marketable securities.
・
Fixed assets were down ¥1.2 billion from the previous fiscal year-end, to ¥445.0 billion. Excluding the influence of APIC, investment in securities increased due to the investment of funds in government bonds, etc.
・
Total liabilities declined ¥30.1 billion, to ¥114.3 billion, due to decreases in income taxes payable, reserve for employees' bonuses, and reserve for HCV litigation
・
Total net assets at the end of the period were up ¥0.5 billion from the end of the previous fiscal year, to ¥666.7 billion. Net income was ¥11.3 billion, and dividends paid were ¥7.8 billion. In addition, unrealized holding losses on securities decreased ¥2.0 billion and foreign currency translation adjustments increased ¥1.2 billion. Due to the application of the equity method to APIC, minority interests declined substantially. The equity ratio was 84.4%, compared with 80.5% at the end of the previous fiscal year.
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